China launched an expanded hydrogen pilot programme covering five urban clusters under the 15th Five-Year Plan, with up to CNY 8 billion (~USD 1.17 billion) over four years and metallurgy among the priority sectors.
The programme aims to reduce hydrogen prices from CNY 35–50/kg today toward CNY 25/kg by 2030. Hydrogen metallurgy currently requires CNY 10–15/kg to be economic, indicating further policy support will be needed.
Baowu’s 1 Mt/year Zhanjiang hydrogen-EAF shaft furnace anchors the programme, with HBIS operating a parallel facility at Zhangjiakou.
Why it matters for green steel: China’s measured but expanded hydrogen pilot signals that the world’s largest steel-producing nation will scale hydrogen-DRI in a controlled fashion, with cost-curve impacts that will reshape global green hydrogen economics by 2030.